Paramount Pictures Provides Slate Financing Update

HOLLYWOOD, Calif.--(BUSINESS WIRE)--
Paramount Pictures and Huahua Media have mutually agreed to end their
slate financing agreement, which otherwise would have financed 25
percent of the Paramount film slate in fiscal 2017, 2018 and 2019,
following recent changes to Chinese foreign investment policies.
Paramount maintains its relationship with Huahua and looks forward to
exploring opportunities to work together in the future.

Paramount announced it has secured a series of individual agreements
with financing partners, including Hasbro Inc., Skydance Media and SEGA,
among others, that will provide committed or expected financing for
approximately 25 percent of the production costs of the studio's film
slate for fiscal 2018 and 2019.

Jim Gianopulos, Paramount Chairman and Chief Executive Officer, said,
"The actions we are announcing today establish a financing model that is
better aligned to Paramount's new strategic approach to film production.
Our focus on a more balanced slate - a mix of big, broad-audience films
and more targeted and co-branded films made with greater fiscal
discipline - demands a more flexible and tailored financing model going
forward. This structure positions us to capture more upside beyond 2019
as the new slate takes full effect."

The production financing Paramount has secured is weighted toward its
bigger budget films, allowing Paramount to capture greater upside on its
more modestly budgeted titles, where presently there is no third party
financing.

Viacom Inc. (NASDAQ: VIAB, VIA), the parent company of Paramount
Pictures, expects a negative net impact of $59 million in the fourth
fiscal quarter in connection with the termination of the Huahua
agreement. The Company will provide additional information regarding its
fourth quarter and full-year results during its regular quarterly
earnings call on November 16, 2017, following the release of its
earnings announcement.

About Paramount Pictures Corporation

Paramount Pictures Corporation (PPC), a global producer and distributor
of filmed entertainment, is a unit of Viacom (NASDAQ: VIAB, VIA), a
leading content company with prominent and respected film, television
and digital entertainment brands. Paramount controls a collection of
some of the most powerful brands in filmed entertainment, including
Paramount Pictures, Paramount Animation, Paramount Television, Paramount
Players, MTV Films, and Nickelodeon Movies. PPC operations also include
Paramount Home Media Distribution, Paramount Pictures International,
Paramount Licensing Inc., and Paramount Studio Group.